Netflix Q1CY24: Best results since 2020; Acquired 9.3 million new subscribers

Netflix has announced one of its best quarterly performances since the start of the Covid-19 pandemic. The streaming company acquired 9.3 million new subscribers in the first quarter of calendar year 2024. This increase boosts its global subscriber base to nearly 270 million, according to a report in The times of India.

Moreover, it recorded a net income of $2.3 billion, while revenue was $9.3 billion, an increase of 15 percent compared to the same period last year.

Netflix has recovered from a slowdown in 2021 and 2022 to achieve its fastest growth rate since the early stages of the Covid-19 pandemic. Several factors have contributed to Netflix’s success. The company attributed its strong quarter to high audience engagement with series like Griselda, 3 Body problemAnd Avatar: The last airbender.

Additionally, the ad-supported tier, which marked its first year, saw a 65 percent increase in subscribers compared to the previous quarter. Notably, 40 percent of new signups in markets offering the ad tier opted for this more affordable alternative. Netflix’s efforts to restrict password sharing also played a role in its favorable quarterly results.

Dan Lin, the newly appointed chairman of Netflix Films, wants to focus on improving overall film quality and producing a greater variety of films to meet different budget levels and subscriber preferences. The New York Times (NYT) reported.

Movies like Lady, LiftingAnd The biggest pop night were highlighted for their role in driving public engagement during the first quarter of this calendar year.

Netflix expects revenue growth of 13 to 15 percent for the full year. By emphasizing a “member-centric approach” in the shareholder letter, the company aims to meet audience preferences by offering a diverse selection of premium films, series and games.

The NYT reported that Netflix co-CEO Greg Peters plans to increase average revenue per user (ARPU), a key Wall Street metric, by including ads, the “additional members” feature that will allow additional subscriptions for enables external users, and tiered pricing structures with varying price points in different countries.

The NYT report states that Ted Sarandos, Netflix’s other co-CEO, said the company has no plans to increase its content spending budget. “The floodgates have certainly opened a bit more in terms of licensing. But again, we are focusing on those that we think will drive the business,” Sarandos said.

First print: April 20, 2024 | 12:44 pm IST